NALA Certified Paralegal Practice Exam

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Study for the NALA Certified Paralegal Exam. Use our practice quizzes with multiple choice questions and explanations to enhance your knowledge. Prepare effectively for your certification!

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Damages that compensate the non-breaching party to a contract for the loss of the bargain are called:

Consequential
Punitive
Liquidated
Compensatory

The correct answer is: Compensatory

Compensatory damages are awarded to the non-breaching party to a contract in order to compensate for any losses or damages incurred by the breach of contract. Consequential damages (choice A) are a type of compensatory damages that are awarded for foreseeable indirect losses resulting from the breach. Punitive damages (choice B) are awarded as a form of punishment for wrongdoing, and are not typically awarded in contract cases. Liquidated damages (choice C) are a predetermined amount of damages agreed upon in the contract, and are not awarded by a court as a form of compensation. Therefore, the best answer is D.